Salem Radio Network News Tuesday, September 28, 2021

Business

Struggling startup Lordstown Motors gets $400M investment

LORDSTOWN, Ohio (AP) — Lordstown Motors has received a $400 million investment as the struggling electric truck maker continues to push toward production of its new pickup this fall.

The Ohio company, which has been under scrutiny over the claims it has made about the number of orders it has received for its trucks, said in a filing Monday with the Securities and Exchange Commission that hedge fund YA II PN Ltd agreed to to buy $400 million of stock.

Shares of the company, which are down more than 60% this year, rose about 2% Monday.

Lordstown’s operations have been under increasing scrutiny in recent months after the company said it had no firm orders for its vehicles just after saying it had enough to maintain production through 2022. The company’s CEO and chief financial officer resigned.

Lordstown acknowledged receiving two subpoenas from federal regulators earlier this month related to the company’s merger with DiamondPeak, a special purpose acquisition company, and that prosecutors in New York also had opened an investigation.

Last month, the company’s new chairwoman said it still plans to start making its electric truck called the Endurance in September.

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